Video: What you Need to Know About Valuations, in 6 Minutes

In Asset Allocation on

As a reminder, we will be consolidating our web presence in the coming months.  Gestaltu.com will be ported over to our new home for research and content at www.InvestReSolve.com/blog.

Please take this opportunity to update your feed readers with the location of our new blog at InvestReSolve.com/blog.


S&P 500 valuations are stretched.  Exactly how stretched?  And what should we infer about future returns?

In this 6-minute video Adam Butler introduces a simple but novel innovation for modeling equity market valuations. There are reasons to believe average valuations should rise through time in response to changes in market structure. We discuss the conditions that might lead to higher valuations through time, and present a model to account for it. Viewers might be surprised at what we find when we analyze current valuations through the lens of this new model.

Click here to watch the video.